How banks will overhaul loyalty perks from October 1
Australian banks are set to curb credit card points and perks from next month.
Customers are set to save $1.6 billion in extra fees when the Reserve Bank of Australia’s surcharge ban comes into effect on October 1.
Australian banks are set to curb credit card points and perks from next month. Getty Images
This will include a reduction in interchange fees, which are paid by businesses to banks.
The surcharge ban aims to reduce the cost of receiving card payments for small businesses, who will no longer be able to directly pass the cost onto shoppers.
The move will leave banks with a smaller pool of money to pass onto customers in form of rewards programs, including frequent flyer points.
Here is what will change when the ban comes into effect.
Commonwealth Bank
Commonwealth Bank is set to overhaul its points program from September 29.
The bank will rebrand its CommBank Awards rewards program to CommBank Yello.
The new program will allow customers to earn points across eligible home loans, savings, cards and insurance.
This can be redeemed with brands such as Woolworths, Myer, Velocity Frequent Flyer, Origin Energy and BP.
The bank will also allow customers to earn points with Virgin Australia’s Velocity Frequent Flyer program.
Commonwealth Bank previously allowed customers to earn points through the Qantas Frequent Flyer program.
Remaining Qantas Points will be transferred to the Qantas Frequent Flyer program on September 29.
The bank will also scrap the $35 card fee waiver for Ultimate credit card holders who spend more than $4000 and replace it with a $35 per month in travel and dining vouchers.
The bank will also add cracked phone screen cover for select cards.
National Australia Bank
NAB will roll out changes to its rewards points program from October 1.
The bank will reduce the number of points earned per dollar spent, including with NAB Qantas Rewards Premium cards.
NAB will cut the Qantas Points earn rate from one point per $1.50 spent to one point per $2 spent for the first $3000 spent in the month.
Customers are set to save $1.6 billion in extra fees when the Reserve Bank of Australia’s surcharge ban comes into effect on October 1. Getty Images
If a cardholder spends between $3000 to $6000, the earn rate will move from one Qantas point per $3 spent to one point per $4 spent from October 1.
Merchandise and charity options will be removed from the NAB rewards store for NAB Rewards Platinum and NAB Rewards Signature Card.
The bank will also remove the Webjet points booster for personal and business NAB Rewards credit cards.
ANZ
ANZ has wound back sign-up perks for its Frequent Flyer Black and Platinum cards ahead of the surcharge ban.
The bank reduced the sign-up bonus on its Frequent Flyer black card from a maximum of 130,000 points to 80,000 and removed the $200 cashback offer.
The platinum program sign-up bonus has fallen from 75,000 to 40,000 points and the $100 credit has been scrapped.
Complimentary travel insurance will continue to be available to customers, but on a reduced number of cards.
Cash advance and balance transfer rates on ANZ credit cards will increase from 21.99 per cent per annum to 23.49 per cent per annum.
Westpac
Westpac will be lifting the interest rates on some of its credit cards and will also be increasing annual fees.
However, one of the main changes is the bank’s insurance offering.
Complimentary insurance cover for some cards will no longer include trip cancellation, travel delay and luggage cover.
Cardholders can also expect to pay an excess for international travel claims.
Customers will also need to activate their complimentary international medical travel insurance before leaving Australia for it to apply.
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